Note 9. Accumulated Other Comprehensive Income (loss)

9 Months Ended

Sep. 30, 2014

Notes

Note 9. Accumulated Other Comprehensive Income (loss)

Note 9.                        Accumulated Other Comprehensive Income (Loss)

The components of other comprehensive income (loss) include (i) the after-tax net unrealized gains and losses on investment securities available-for-sale, including the subsequent increases and decreases in fair value of available-for-sale securities previously impaired and the non-credit related component of other-than-temporary impairments of fixed maturities and (ii) the after-tax unrealized gains and losses on a cash flow hedge.

Changes in the balances for each component of accumulated other comprehensive income (loss), shown net of taxes, for the periods indicated were as follows (in thousands):

		Three Months Ended September 30, 2014
		Unrealized
		Gains (Losses) on
		Available-for Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	(1,420)	$	(99)	$	(1,519)
Other comprehensive income (loss) before reclassifications		(587)		41		(546)
Amounts reclassified from accumulated OCI		(1,211)		-		(1,211)
Net other comprehensive income (loss)		(1,798)		41		(1,757)
Other comprehensive (income) loss attributable
to noncontrolling interests		81		-		81
Ending balance	$	(3,137)	$	(58)	$	(3,195)

		Three Months Ended September 30, 2013
		Unrealized
		Gains (Losses) on
		Available-for Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	(3,268)	$	(191)	$	(3,459)
Other comprehensive income (loss) before reclassifications		(1,364)		58		(1,306)
Amounts reclassified from accumulated OCI		(1,151)		-		(1,151)
Net other comprehensive income (loss)		(2,515)		58		(2,457)
Other comprehensive (income) loss attributable
to noncontrolling interests		(6)		-		(6)
Ending balance	$	(5,789)	$	(133)	$	(5,922)

		Nine Months Ended September 30, 2014
		Unrealized
		Gains (Losses) on
		Available-for Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	(10,350)	$	(122)	$	(10,472)
Other comprehensive income (loss) before reclassifications		12,177		64		12,241
Amounts reclassified from accumulated OCI		(4,832)		-		(4,832)
Net other comprehensive income (loss)		7,345		64		7,409
Other comprehensive (income) loss attributable
to noncontrolling interests		(132)		-		(132)
Ending balance	$	(3,137)	$	(58)	$	(3,195)

		Nine Months Ended September 30, 2013
		Unrealized
		Gains (Losses) on
		Available-for Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	15,231	$	(218)	$	15,013
Other comprehensive income (loss) before reclassifications		(9,908)		85		(9,823)
Amounts reclassified from accumulated OCI		(11,698)		-		(11,698)
Net other comprehensive income (loss)		(21,606)		85		(21,521)
Other comprehensive (income) loss attributable
to noncontrolling interests		550		-		550
Acquired from noncontrolling interests		36		-		36
Ending balance	$	(5,789)	$	(133)	$	(5,922)

Presented below are the amounts reclassified out of accumulated other comprehensive income (loss) and recognized in earnings for each of the periods indicated (in thousands):

		Three Months Ended				Nine months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Unrealized gains (losses) on available-for-sale securities
reclassified during the period to the following income
statement line items:
Net realized investment gains	$	1,535	$	1,846	$	7,022	$	17,647
Income before income tax		1,535		1,846		7,022		17,647
Tax effect		324		695		2,190		5,949
Net income	$	1,211	$	1,151	$	4,832	$	11,698